GM takes driving seat at Daewoo

WORKERS fighting a strong rearguard action against the takeover of South Korean automobiles maker Daewoo Motor by America's General Motors failed to stop the deal being signed today.

Although the venue had to be moved to avoid protesting workers, after a year of negotiations directors signed an agreement which will give General Motors key assets in the South Korean motor market, and a launchpad for its expansion in Asia.

The Americans are to pay $251m (£172m) in cash for a 42.1% stake in a new joint venture company, while Daewoo creditors will take 33% and associates of GM will have 24.9%.

The GM consortium will inject $400m cash as working capital. Daewoo was one of the biggest casualties of the bursting of the South Korean bubble in 1997.